The Singapore business arm of US agribusiness giant Bunge has made an offer for the purchase of Australia-based Tully Sugar.

The off-market takeover offer by Bunge Agribusiness Singapore, announced today (23 December), was for A$41 per share and values Tully Sugar at around A$126.7m (US$126.9m).

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The directors of Tully Sugar said they intend to accept the offer in respect of Tully Sugar shares they own and are recommending that shareholders also accept the offer.

Tully Sugar chairman Dr Ralph Craven said: “The Bunge offer provides substantial value to all Tully Sugar shareholders. With its deep trading experience and global reach, Bunge brings operating and financial strength to Tully Sugar. The Australian sugar industry and the Asian region are evolving quickly. The Tully Sugar board believes the association with Bunge will assist Tully to evolve successfully with these changes.”

The offer is conditional on a 50.1% minimum acceptance, and Tully Sugar said it will convene a shareholder meeting to vote on the amendment to the 20% shareholder cap that its current constitution stipulates.

The offer is expected to remain open for up to two weeks following the “positive” conclusion of the shareholder meeting.

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Christopher White, CEO of Bunge Asia, said: “The partnership with Tully Sugar will be an excellent complement to Bunge’s existing global sugar footprint. Bunge has substantial milling and refining assets in Brazil, backed by a global trading and merchandising organisation headquartered in London. Combining with Tully Sugar is an ideal next step in Bunge’s strategy of building a large-scale global sugar business. We look forward to linking Tully Sugar to our global business and we are keen to explore possibilities for expanded cane production.”